Eat founders to resign after company restructure

The founders of sandwich chain Eat are expected to resign after the company closes 10% of its sites.

After stepping down as directors, founders Niall and Faith MacArthur will no longer have any involvement with Eat, according to ThisIsMoney.co.uk.

The former owners will remain shareholders, but their stakes are expected to drop.

According to a spokesperson, the MacArthurs have not had day-to-day involvement with the company for the last five years besides sitting on the board, with operations being overseen by Andrew Walker.

The 100-strong company, which launched in 1996, appointed accountancy firm KPMG earlier this year to advise on restructuring after its losses doubled to £3.7 million.

Given KPMG's involvement with Byron’s CVA, which resulted in 20 sites being earmarked for closure, it was expected that Eat would employ a similar strategy.

The company stopped working with KPMG in April, and as a result of discussions with its landlords has avoided resorting to a CVA. Its restructuring process, however, has led it to close nearly 10% of its sandwich shops including locations at Finsbury Pavement in east London; Cardiff; and Glasgow.

Despite its UK closures, Eat still plans to open five international sites later this year at locations including Barcelona and Paris.